James L. Dolan, the owner of the Knicks and the chief executive of the Madison Square Garden Company, violated federal law when he failed to tell government agencies of his acquisition of additional voting securities in the company, the Federal Trade Commission said Thursday.
Mr. Dolan, who also serves as executive chairman of MSG Networks, has agreed to pay $609,810 in civil penalties to settle the charges, the F.T.C. said.
Companies and individuals must inform the F.T.C. and the Justice Department if a major financial move, such as a merger or acquisition, will cause the value of their voting securities in a company to surpass a certain amount. The rule, called the Hart-Scott-Rodino Act, allows the government to evaluate whether the transactions will negatively affect commerce in the United States.
The parties are required to send detailed filings to the agencies in advance and cannot close the deal until the end of a waiting period.
Source : https://www.nytimes.com/2018/12/06/us/politics/knicks-james-dolan-fined.html